The American Club 2023/2024 Annual Report

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2024

2. MATERIAL ACCOUNTING POLICY INFORMATION (cont’d)

Amendments to FRS 1 and FRS Practice Statement 2: Disclosure of Accounting Policies

The Club has adopted the amendments to FRS 1 Presentation of Financial Statements for the first time in the current year. The amendments change the requirements in FRS 1 with regard to disclosure of accounting policies. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The supporting paragraphs in FRS 1 are also amended to clarify that accounting policy information that relates to immaterial transaction, other events or conditions is immaterial and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material. The Club has applied materiality guidance in FRS Practice Statement 2 in identifying its material accounting policies for disclosures in the related notes. The previous term ‘significant accounting policies’ used throughout the financial statements has been replaced with ‘material accounting policy information’.

At the date of authorisation of these financial statements, the following FRSs, INT FRSs and amendments to FRS that are relevant to the Club were issued but not yet effective:

Effective for annual periods beginning on or after 1 January 2024

• Amendments to FRS 1: Classification of Liabilities as Current or Non-current • Amendments to FRS 1: Non-current Liabilities with Covenants

Management anticipates that the adoption of the FRSs, INT FRSs and amendments to FRS in the future will not have a material impact on the financial statements of the Club in the period of their initial adoption. Financial instruments - Financial assets and financial liabilities are recognised on the Club’s statement of financial position when the Club becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets and financial liabilities, as appropriate, on initial recognition.

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2023 / 2024